A measure to aid analysis of State Medicaid programs was developed and demonstrated. The Medicaid Program Index (MPI) was developed to differentiate among State Medicaid programs according to four characteristics: inclusion of the medically indigent, optional services covered, limitations on provision of basic services, and arrangements for paying providers. There is evidence that the States vary widely on these factors, which can be analyzed in the aggregate using the MPI, or separately. Other uses for the MPI are identifying State program variations, accounting for State program differences by comparing them to explanatory variables, identifying trends in program characteristics over time, and developing hypotheses explaining the trends. The use of the MPI in analysis of trends over time is demonstrated and trends revealed by the results of the MPI for 1970 and 1975 are outlined. It is concluded that similar measures could be developed to aid in analyses of other Federal and State programs in which interstate variation is an important characteristic.


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